The Economic and Financial Crimes Commission (EFCC) has arrested over 200 suspects in connection with foreign exchange scams and financial market manipulation. Sources, who were not authorized to speak to the press, revealed that these suspects, primarily Bureau De Change operators, are currently in EFCC custody across the country.
One source noted, “Over 200 suspects have been arrested by the EFCC for forex scam and currency speculation. They were arrested in various states across the country.” Another source confirmed the arrests and mentioned that the suspects were being interrogated to determine their involvement, with arrests occurring in Abuja, Lagos, Rivers, and Kano States.
A third source added, “The clampdown on the forex scammers would yield positive results. Many of them have been arrested, and they will face the consequences of their actions.” Last week, the EFCC expanded its clampdown on BDC operators, arresting traders in Lagos, Kano, and Port Harcourt as part of the Federal Government’s efforts to stabilize the local currency. The government blamed forex market speculators and digital marketers for the significant depreciation of the naira.
On May 17, operatives of the EFCC’s Uyo Zonal command arrested five suspected forex speculators at the Ama-Hausa mosque in Aba, Abia State. The arrested suspects include Hassan Umaru, Haruna Umar, Badamasi Abdullahi, Auwal Muhammed, and Kasimu Muhammed. EFCC spokesperson Dele Oyewale stated that the suspects had various currencies at the point of arrest, including 23,000 Won, 52 Yuan, $6,500 Nippon Ginko, 40 Dalawampung Piso, 20 Gambian Dalasis, 20 Swaziland currency, and N382,000. Other items recovered included mobile phones, a power bank, an air pod, and an ATM card. The suspects will be charged to court once investigations are concluded.
In another development, Oyewale revealed that the EFCC’s Enugu Zonal Command arraigned Daniel Chukwuka Koussou, a forex broker, before Justice C. O. Ajah of the State High Court in Enugu State on a charge of criminal conversion and stealing of N112.8m. Koussou pleaded not guilty and was remanded at the Enugu State Correctional facility pending bail. The charge against him involves fraudulently converting N112,800,800, property of Chinedu Igbokwe, for his personal use.
Oyewale disclosed, “Koussou was arrested following claims of a petitioner who alleged that he sent $276,000 to the defendant to convert into naira. Providus Bank paid Koussou in naira, but he only sent part-payment and diverted the rest. All efforts to recover the remaining funds proved abortive.”
Last week, BDC operators in Abuja were also arrested for allegedly aiding currency speculators. Currency operators confirmed that these sting operations occurred in Lagos, Kano, and Port Harcourt.
Meanwhile, the naira recorded marginal appreciation at both the official and parallel markets after trading activities on Wednesday. The naira exchanged at 1,462/$ compared to 1,465/$ on Tuesday at the official market. Daily foreign exchange market turnover decreased by 54 percent to $123.45m from $268.17m on Tuesday. At the parallel market, the dollar was sold for 1,470/$, gaining N10.
A trader at the Wuse Zone 4 Market, Malam Yahu Ibrahim, noted that trading activities had been slow due to the Central Bank of Nigeria’s monetary policy committee meeting. He explained, “The market this week has not been very fast. We traded at N1,470 today but we are buying between N1,450 and N1,455. There is still demand but people are just waiting to observe and see what will happen next. Maybe from next week, we will start seeing changes.”